Exploring the Trend of New Zealand Housing Prices to Support Sustainable Development

Linlin Zhao, Jasper Mbachu and Zhansheng Liu
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Linlin Zhao: College of Architecture and Civil Engineering, Beijing University of Technology, Beijing 100124, China
Jasper Mbachu: Faculty of Society & Design, Bond University, Gold Coast 4226, Australia
Zhansheng Liu: College of Architecture and Civil Engineering, Beijing University of Technology, Beijing 100124, China

Sustainability, 2019, vol. 11, issue 9, 1-18

Abstract: The New Zealand housing sector is experiencing rapid growth that has a significant impact on society, the economy, and the environment. In line with the growth, the housing market for both residential and business purposes has been booming, as have house prices. To sustain the housing development, it is critical to accurately monitor and predict housing prices so as to support the decision-making process in the housing sector. This study is devoted to applying a mathematical method to predict housing prices. The forecasting performance of two types of models: autoregressive integrated moving average (ARIMA) and multiple linear regression (MLR) analysis are compared. The ARIMA and regression models are developed based on a training-validation sample method. The results show that the ARIMA model generally performs better than the regression model. However, the regression model explores, to some extent, the significant correlations between house prices in New Zealand and the macro-economic conditions.

Keywords: sustainable development; house prices; ARIMA; regression analysis; New Zealand (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
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